Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Individualcontributions, if any, are made with previously taxed dollars. Use monthly payments table.Required:a. Person A, age 53, made no contributions to the pension plan and will receive a $700 monthly check for life.b. Person B, age 58, made contributions of $25,000 to the pension plan and will receive a monthly check of $1,700 for life.Note: Round your answer to 2 decimal places.c. Person C, age 63, made contributions of $18,000 to the pension plan and will receive monthly payments of $1,300 over her life andthe life of her 66-year-old husband.Note: Round your answer to 2 decimal places.d. Person D, age 58, made contributions of $31,000 to the pension plan. He will receive quarterly payments of $4,300 over his life andthe life of his 60-year-old wife.Note: Round your answer to 2 decimal places.a. Tax free portionb. Tax free portionc. Tax free portiond. Tax free portionAmount

Find the joint life expectancy of the individual and their beneficiary (if applicable) using the…

Answered: Using the simplified method, determine…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 4DQ

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Wi Saved 61-65 Using the simplified method, determine the tax-free amount of the following distributions from a qualified pension plan. Individual contributions, if any, are made with previously taxed dollars. Use monthly payments table Required: a. Person A, age 66, made no contributions to the pension plan and will receive a $1,300 monthly check for life. b. Person B, age 71, made contributions of $31,000 to the pension plan and will receive a monthly check of $2,900 for life. Note: Round your answer to 2 decimal places. c. Person C, age 52, made contributions of $30,000 to the pension plan and will receive monthly payments of $2,500 over her life and the life of her 54-year-old husband Note: Round your answer to 2 decimal places. d. Person D, age 72, made contributions of $43,000 to the pension plan. He will receive quarterly payments of $5,500 over his life and the life of his 69-year-old wife Note: Round your answer to 2 decimal places. the Individuals 110 or under 111-120 121-130…
Which of the following is TRUE regarding qualified retirement plans? Distributions are taxable only prior to age 59½. Contributions are made with 100-percent after-tax dollars. Distributions are subject to a 10-percent penalty. Contributions are made with 100-percent pretax dollars.
Under a Roth IRA, I. any taxpayer may contribute and deduct up to $6,000 deductible contributions per year. II. the maximum annual contribution is phased out for unmarried taxpayers with adjusted gross income between $124,000 and $139,000. Oa. Only statement I is correct. Ob, Only statement II is correct. Oc. Both statements are correct. Od. Neither statement is correct. Previous Next
Required: A married couple received $9,200 of social security benefits. a. Calculate the taxable amount of those benefits if the couple's provisional income is $20,500. b. Calculate the taxable amount of those benefits if the couple's provisional income is $38,000. c. Calculate the taxable amount of those benefits if the couple's provisional income is $56,000. Taxable amount of benefits a. b. C.
A corporation's pension plan provides a lifetime annual income to its employees upon retirement at age 65. The plan provides 3% for each year of service of the employee's salary upon retirement. Those who retire before 65 have their benefit reduced by 1.3% for each year before 65 that they retire. Russ retires at age 61 with 29 years of service. If his salary upon retirement is $76,763, what is his annual pension benefit? Round your answer to the nearest dollar.
Which of the following taxpayers may potentially qualify for the retirement savings contributions credit (Saver's Credit)? Person A . She is married but will file a separate return. Her 2020 modified adjusted gross income was $29,950. She contributed to a Roth IRA. Person B. He will use the single filing status. His 2020 modified adjusted gross income was $31,000. His employer made contributions on his behalf to a simplified employee pension (SEP) IRA. Person C. He will use the head of household filing status. His 2020 modified adjusted gross income was $51,000. He contributed to a traditional IRA. Zee and Kay. They are a married couple filing a joint return. Their 2020 modified adjusted gross income was $69,000. Veronica made voluntary contributions to her company's 401(k) plan.
A pension plan paid out benefits amounting to $343,200 during the year to retired plan members. The entry reflected in a pension fund work sheet should show Select one: a. DEBIT-Plan Assets; CREDIT-Cash. b. DEBIT-Plan Expenses; CREDIT-Cash. c. DEBIT-Plan Expenses; CREDIT-Plan Assets. d. DEBIT-Defined Benefit Obligation; CREDIT-Cash. e. None of the above.
Mr. and Mrs. Nester had the following items of financial support this year: Social Security benefits Dividends and interest Pension from Mr. Nester's former employer Pension from Mrs. Nester's former employer $ 26,890 78,600 28, 200 34,700 Required: Both pensions were paid by a qualified defined-benefit plan. Assume the taxable year is 2023. Compute Mr. and Mrs. Nester's AGI. Note: Round your intermediate calculations to the nearest whole dollar amount. Mr. and Mrs. Nester's AGI
You have the following information related to Chalmers Corporation's pension plan: Use the PV of 1, PVAD of 1, and PVOA of 1 tables where appropriate. (Use the appropriate factor(s) from the tables provided.) a. Defined benefit, noncontributory pension plan. b. Plan initiation, January 1, 20X3 (no credit given for prior service). c. Retirement benefits paid at year-end with the first payment one year after retirement. d. Assumed discount rate of 7%. e. Assumed expected rate of return on plan assets of 9%. f. Annual retirement benefit equals years of credited service × 0.02 x highest salary. g. Chalmers made $1,200 contributions to the pension fund at the end of each year. h. The actual returns were $0 and $48 in 20X3 and 20X4, respectively. i. Information for Frank Bullitt, the firm's only employee, follows: January 1, 20X0 December 31, 20Y7 (15 years from plan inception) Start date Expected retirement date Expected number of payments during retirement 20 Selected actual and expected…
Benjamin and Ester file a joint return and have AGI of $165,000. Both are active participants in their employer's pension plan. They have one child, Emily, who is age 8. Emily's grandparents contributed $500 to a Coverdell Education Savings Account for Emily in 2022. What is the maximum permitted Coverdell Education Savings Account contribution that Benjamin and Ester can make in 2022? Multiple Choice O $0. $500. $1,500 $2,000.
Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2. a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,800. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,900. c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,990. d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,800. Retirement Savings Contributions Credit
The annual amount of tax deductible contributions to qualified retirement plans are the same as the amount of tax deductible contributions to an IRA (Individual Retirement Account). O True O False

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